Who is right, my Mortgage Advioser or my EA?

CharlieCai

Hi all,

My EAs wanted me to have mortgage arranged in place (Writing in Principle) before I make my offer. This will make my offer more serious and better chance of getting accpeted.

However, when I call my mortgage advisor (recommended by Martin!), he suggested not to have it as it costs and affects my credit score. He suggested me to pass on his contact to anybody ask for WIP and make application once my offer is accepted.

I decided to listen to my mortgage adviser as he is more an experts in mortgage than those EAs. But I still wonder who is right here.

payless

so long as you aren't doing loads of AIPs ( agreement in principles ) it should not be an issue .., never known it have a monetary cost sounds like a lazy mortgage adviser to me... let me guess he's on the end of a phone line in a sales based call centre .

Whilst you can transact mortgage advice over the phone I would normally recommend FTB do it face to face and/or with someone who is willing to spend the time / patience to answer your questions, and provide you with advice at ALL stages of the process .

_Andy_

L+C doing a great job as usual then.

CharlieCai

Yes, it is over the phone!
Regarding the cost, my mortgage advisor suggests, in order to get Agreement in Principle, I need to make an application with upfront fee on an assumes price. Later on, if I want to increase the price, or change lender, I will lose my mortgage fee paid for my AIP?

payless

_Andy_ wrote: »

L+C doing a great job as usual then.

Now why in the world would you assume its that (still ) much recommended company, of such high standing.

koexelek

I tend to agree that there is little sense in carrying out a credit score with a specific lender, until you know who you are going to use.

Most mortgage brokers know the criteria of each company, so if you know you have no skeletons in the cupboard ( late payments, ccj's etc), they should be able to tell you fairly accurately whether you will pass the credit score or not.

CharlieCai

Thanks Koexelek.
Does it really cost to get AIP? Do I have to make an formal application with upfront fee non-refundable?

payless

K

Yeah but surely an AIP avoids any nasty ( perhaps unknown ) issues coming to light later.

Doesn't mtter who you use for AIP - its just a backup / proof to sellers... use one that is regularly competitive, but no obligation to use them for final application.

More importantly the client gets peace of mind.

payless

AIP are free .. and that should be enough for now

most lenders won't take a full application until property & prices are known

Mrs_Bumble

I agree with koxelek, don't see the value of just doing an aip as you might not end up going with the lender that the aip has been scored with. If the mortgage adviser knows his lenders he will know the criteria and whether what you intend to offer is doable, and every aip can show as a search on your credit file and in this day an age of twitchy lenders don't see any benefit to it.

Don't see that there is peace of mind if you won't necessarily use the lender that you have scored it with. Just a useless search the only thing it will show up is any skeletons in the credit file so as long as you have been honest and there aren't any, don't see any value.

Thrugelmir

CharlieCai wrote: »

Hi all,

My EAs wanted me to have mortgage arranged in place (Writing in Principle) before I make my offer. This will make my offer more serious and better chance of getting accpeted.

However, when I call my mortgage advisor (recommended by Martin!), he suggested not to have it as it costs and affects my credit score. He suggested me to pass on his contact to anybody ask for WIP and make application once my offer is accepted.

I decided to listen to my mortgage adviser as he is more an experts in mortgage than those EAs. But I still wonder who is right here.

The EA may be following instructions from their client. I have always requested that a buyer has a MIP before making an offer. Its a sure way of avoiding time wasters. It shows intent.

You may find a house where the vendor wants to move quickly. With a MIP the whole process could be speedier. My record is for a complete sale and purchase in 17 working days on a new build in 1993.